Real Estate Auctions
- Thread starter Spencer
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Spencer said:
If the seller had a "reasonable sense of value" and applied that knowledge based on present market conditions (excessive inventory--very few buyers) when pricing their home for sale, they wouldn't need an auctioneer to sell their home.
I believe folks who go to these auctions fall into 3 categories (1) People who are actually looking to buy a place at the cheapest price possible; (2) Late-night Infomerical Devotees who think they're on their way to making a killing in the real estate market, and (3) Owners of other properties and realtors from the surrounding area who are curious to see what's happening in town (and probably farming for potential buyers).
Aside from the obvious need for an auction for the average joe selling a home (meaning they want to unload it quickly with no hassles), a lot of these folks selling their homes at auction today take the view that they are selling "fine and rare pieces of art" that are highly prized by many folks eager to out-bid each other at ever increasing prices...nothing could be further from the truth. People going to these auctions are looking for bargain-bin prices...meaning BELOW what properties sold for in the last couple of years.
There may be an odd property that fetches a fairly decent price, but that will clearly be the exception and not the rule (and probably the example the auctioneer uses when he's pushing his services to potential clients).
Too many sellers have not reached a sufficient level of financial pain to price their homes to market...and buyers (especially if they are investors) are not willing to catch a falling knife. With ever-increasing inventory hitting the market day-by-day and prices starting to show a tiny bit of softening, buyers are content to park their money in a CD and wait for the prices to come down to them.
Smiling JOe said:
The auction that I participated in by phone was heavily advertised. There were probably 100 or more bidders in the hotel where it was held and another 50+ on the phones (who were assigned a bidding rep on site).
That market was in the dumps at the time and people definitely got steals, but it still may have been a good deal for the developer to finish up at the project and get his sales staff out of there, etc.
I just remember at the end there were a few units left and there was a rock bottom price set but the auctioneer was basically saying 'Anyone who wants one of these just come up to the front and sign for the minimum'. I wish I would have bought a few more units but just couldn't pull it off at the time.
I went to an auction as the house mortgage broker in N.Y. about 10 years ago. The people who came in for the auction were not suits, they had cash, and at that time, some properties were a steal. I had an auctioneer stay at my place early spring from TN, and he said auctions were how properties were sold in some Sotuhern States even before they were listed with realtors. Is this true?
he said he went to an auction in Destin, and was going to be coming back to look for property soon, and I imagine there may be a few deals here and there.
he said he went to an auction in Destin, and was going to be coming back to look for property soon, and I imagine there may be a few deals here and there.
I was told by John Roebuck that auctions work best in a sellers market. In a buyers market, especially like in South Walton sales at auctions are down. In a sellers market buyers really get in a bidding war. Right now the buyers just walk if they do not get the property at what they think is a steal. It could have gotten real crazy if we would have sold some of our listings last year at auctions!!! If the auction is not "absolute" I would not waste my time going.
Bobby J said:
...don't you actually have to have "buyers" to call it a "buyer's market?"
Someone told me yesterday, "Look, I've got the money in the bank...it doesn't matter what the Realtors are saying--it's not a "buyer's" market until those of us with the cash say it is....and we're still not there yet."
I can dig it.
mark pale said:
Give him some credit Mark he is working on a thesis
OHHHHHH so you know that Shelly is a HE?????
Just_In_Thyme said:
SHELLY said:...don't you actually have to have "buyers" to call it a "buyer's market?"
Someone told me yesterday, "Look, I've got the money in the bank...it doesn't matter what the Realtors are saying--it's not a "buyer's" market until those of us with the cash say it is....and we're still not there yet."
I can dig it.
Shelly,
There are two types of markets. Buyers and Sellers markets. A year ago the seller dictated the transaction. Today, a buyer rules. It is merely a term. BTW, I have closed 3 cash transaction in the past two weeks. Tell your friend don't stand around waiting too long. His realtor could be on to something. I have made allot of money while people stand around and analyze. We call it paralysis by analysis!!!!!
I held a auction at cafe-30-A. Great turn out. Good food and a fun time by all except the sellers! :funn: